Serial correlation skews standard errors, making your coefficients look more statistically significant than they actually are. Use the Wooldridge test for autocorrelation (requires xtserial ). ssc install xtserial xtserial GDP inflation trade_openness Use code with caution.
Allows for arbitrary correlation within entities.
Assumes unobserved individual effects are uncorrelated with the regressors. xtreg y x1 x2, re Use code with caution. Copied to clipboard Choosing Models: Hausman test stata panel data
A variable indicating the time period (e.g., year , quarter , month ). Loading and Structuring the Data
: Stata will report if your panel is "strongly balanced" (all entities observed for all time periods) or "unbalanced" (some gaps). 2. Exploratory Analysis Allows for arbitrary correlation within entities
datasets, use the Difference or System Generalized Method of Moments (GMM) via the xtabond2 package.
Introduction to longitudinal-data/panel-data manual. 1. xt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Copied to clipboard Choosing Models: Hausman test A
Every entity is observed at every time period.
: Some entities have missing time periods or fewer observations.